23andMe, the genetic testing company that was once valued at $6 billion but filed for bankruptcy in March, will be bought by Regeneron Pharmaceuticals, a biotechnology company that has used DNA research to develop new drugs.
Regeneron said it had been named the successful bidder in a bankruptcy auction and would pay $256 million for “substantially all of the assets” of 23andMe, which will continue to offer consumer DNA testing services.
23andMe filed for bankruptcy as it struggled to generate recurring revenue and faced a mountain of concerns over the security of the sensitive genetic information it held.
If approved by a bankruptcy court and by regulators, the sale was expected to close in the third quarter of 2025, Regeneron said. The deal would give the company control over the genetic information of millions of 23andMe customers, less than two years after a data breach heightened security and privacy concerns.
Regeneron said it would comply with 23andMe’s consumer privacy policies and with laws that govern the treatment of customer data. Regeneron added that it was also prepared to allow a court-appointed ombudsman and other interested parties to review its use of customer data, privacy programs and security controls.
“Regeneron will not use any personal data in a manner inconsistent with the purposes for which it was shared with 23andMe,” Regeneron said in a statement. “So all those preferences would hold steady, and personal data will not be used for research without consent.”
Regeneron said that 23andMe had stated that about 84 percent of its customers opted to allow research using their genetic information.
Based in Tarrytown, N.Y., Regeneron uses DNA for research and has developed treatments to prevent blindness, asthma, several forms of cancer, Ebola and Covid-19, according to its co-founder, president and chief scientific officer, Dr. George D. Yancopoulos. The company said its purchase of 23andMe would strengthen its research into new drugs to treat serious diseases.
“We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health,” Dr. Yancopoulos said in a statement, “while furthering Regeneron’s efforts to use large-scale genetics research to improve the way society treats and prevents illness overall.”
In its own statement, 23andMe said that Regeneron had offered jobs to all of the employees in the business units that it was acquiring. Mark Jensen, chair and member of the special committee of the board of directors of 23andMe, added that the transaction maintains “critical protections around customer privacy, choice and consent with respect to their genetic data.”
23andMe’s DNA testing kits were once a hot item, bought by millions of customers who provided the company with saliva samples for analysis, usually to learn about their ancestry, family traits and potential health risks.
After 23andMe went public in 2021, its market value briefly topped $6 billion. But the company later had a steep drop in earnings, which it attributed to fewer test kits being ordered after customers had bought one to learn about their ancestry. The decline also came after a data breach in 2023, in which hackers appeared to target Jewish and Chinese customers, and gained access to personal information from nearly seven million profiles.
A class-action lawsuit subsequently accused the company of failing to notify those customers that they had been targeted. 23andMe settled the lawsuit last year and agreed to pay $30 million and provide three years of security monitoring, Reuters reported.
In September, seven independent directors of the company’s board resigned, citing differences with the chief executive, Anne Wojcicki, over what they described as her failure to develop a solid plan to help the company regain its footing.
In a statement in March, 23andMe said it had filed for Chapter 11 bankruptcy to “facilitate a sale process to maximize the value of its business” and to make further cost reductions. Ms. Wojcicki announced at the same time that she had resigned so she herself could bid on the company.
Citing concerns about the declining financial stability of 23andMe, California’s attorney general, Rob Bonta, issued a consumer alert in March, reminding residents that they have a right to request 23andMe to delete their genetic data.
Mr. Bonta’s office said in a statement on Monday that, as a party to the bankruptcy proceedings, it had asked the court to appoint a consumer privacy ombudsman.
“Our office has been engaged with the company since their data breach 20 months ago, and will remain engaged to ensure the rights of California consumers are protected,” it said.
Michael Levenson covers breaking news for The Times from New York.
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